Officials and liquidators are pursuing businesses behind 21 movies that sought nearly £16 million in incentives from a joint HMRC and British Film Institute scheme.
Businesses controlled by prolific film producer Alan Latham — whose films have featured stars including Elizabeth Hurley, Kelsey Grammer, and Bill Nighy — are being investigated by HM Revenue & Customs (HMRC) amid questions over how taxpayer funds were used to finance dozens of little-known productions.
Liquidators are examining the collapse of Highfield Grange Production Services, one of Latham’s key holding companies, which listed £20.4 million in film investments now written down to zero. Creditors, including HMRC, have been left facing losses after Highfield fell into liquidation following a tax dispute.
The tax authority is also seeking to wind up GSP Studios International, Highfield’s main shareholder and another Latham-controlled entity.
A Times investigation found that more than 20 films linked to Latham attempted to access £16 million in creative industry tax reliefs, part of a government scheme run jointly by HMRC and the British Film Institute (BFI) to boost UK film production.
Among the titles are Christmas in Paradise, a romantic comedy starring Elizabeth Hurley (pictured) and Kelsey Grammer, shot in the Caribbean as part of a promotional deal for St Kitts and Nevis, and Miss Willoughby and the Haunted Bookshop, featuring Grammer again.
Many of the companies behind these films have not filed accounts for several years — a criminal offence — while others face being struck off the corporate register. The movies are absent from the BFI’s list of projects that received final certification, but some were granted “interim certification”, which allows funds to be released before completion.
Questions have also been raised about the accuracy of the production budgets used to claim tax relief.
For example, Solis — a 2018 sci-fi film starring Steven Ogg of The Walking Dead fame — was reported in company accounts to have cost £4.7 million, qualifying for nearly £1 million in interim tax credits. Its director, Carl Strathie, has said publicly that the film’s real budget was closer to £700,000.
Another film, Gatecrash (2020), is listed as having cost £4.5 million, yet individuals familiar with the project claim the budget was about £750,000. It received nearly £900,000 in tax credits.
Liquidators at Begbies Traynor, who are overseeing Highfield’s administration, said they have conducted “thorough investigations” into why the film investments were written off. In filings this year, they confirmed that solicitors had been instructed to pursue “connected parties” with “substantial claims” against two unnamed special purpose vehicles.
They added that “substantial amounts of money have been identified as having been paid to other connected companies” and that transactions were being investigated for “having the effect of diminishing the company’s assets.”
A statement of affairs signed by Latham listed £3.7 million owed to GSP Studios International, another of his companies, now also facing HMRC action.
The episode has raised wider questions for HMRC and the BFI, which oversee the certification and administration of the UK’s £500 million-a-year film tax credit scheme.
The BFI confirmed that it works closely with HMRC and the government to “uphold the integrity of the system,” adding: “We take any concerns about potential misuse seriously. The tax incentives have helped attract investment, create jobs across the UK and showcase British creativity worldwide.”
An HMRC spokesperson said only: “We take compliance within creative industry tax reliefs seriously.”
Latham, an accountant turned film producer, has held more than 150 directorships and remains linked to more than 60 active companies. He did not respond to multiple requests for comment.
There is no suggestion of wrongdoing by any actors or crew members involved in the productions.
In 2022, Latham told the Mail on Sunday that “inefficiency” was to blame for his companies’ repeated failure to file accounts, after investors complained about losing money in one of his earlier films, The Comedian’s Guide to Survival, which grossed just £75.
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HMRC and BFI investigate film producer Alan Latham over £16m taxpayer-funded movie projects